Decision details

To consider the report of the Cabinet Member for Change and Communities detailing the SRB2 Regeneration Programme Succession Strategy.  The £26 million SRB2 regeneration programme was used to improve life in the inner city neighbourhood, create 820 new jobs, directly helped 1,356 residents to get jobs and 909 to obtain qualifications. 129 new businesses were helped to start up and 25,500m² of new and improved business space created, alongside 467 new homes for rent being built and 386 new homes for sale.

A decade after the SRB2 grant-funding ceased it is proposed to re-invest remaining legacy assets held by the Council (as Accountable Body) in the SRB2 programmes successor body West Itchen Community Trust, to ensure the infrastructure and social-capital of the inner-city area continues to be improved.

(i)  To award a grant of £386,000 to West Itchen Community Trust for the refurbishment of the Acorn Enterprise Centre in Empress Road subject to:

• Satisfactory appraisal of the WICT business plan relating to Acorn Enterprise Centre;
• Confirmation of the type and financial cost of proposed grant funded works by a suitably qualified Property Surveyor; and
• Confirmation of co-investment/match funding on behalf of WICT and of the works programme.

(ii)  To delegate authority to the Director of Environment and Economic Development following consultation with the Head of Legal, HR and Democratic Services, to enter into a grant agreement with West Itchen Community Trust and to do anything necessary to give effect to the payment of the grant.

(iii)  To protect grant monies through the placement of a Legal Charge for 10 years from the date of issue, on Acorn Enterprise Centre.

(iv)  To add, in accordance with Financial Procedure Rules, a sum of £386,000 to the Leader’s Capital Programme, for a capital grant towards works at the Acorn Enterprise Centre.

(v)  To approve, in accordance with Financial Procedure Rules, capital expenditure of £386,000 in 2013/14 from the Leader’s Capital Programme to award a capital grant.

1.  Southampton City Council, as the Accountable Body of the SRB2 Regeneration Programme, holds £386,000 of unallocated Government grants which were subject to clawback. The final decision on re-investment of clawback that had originally rested with SEEDA was delegated to the Council in 2008.

2.  The reason for this report is to recommend reinvestment of this Government grant in the Successor Body to the SRB2 programme, WICT, to enable it to continue improving the skills and employability of residents in the West Itchen (SRB2) area.

The following options were considered and rejected:

a)  Using the clawback to reduce the council’s financial gap. This was rejected as the Council has a responsibility to continue to address deprivation in the City and a one off grant would not reduce the Council’s financial pressures on a year on year basis.

b)  Following the abolition of SEEDA and the removal of clawback liabilities on the Council the SRB2 Government grant is no longer ring-fenced to meeting former SRB objectives. The option of extending the geographic area of benefit using the clawback was rejected because residents in the former SRB2 regeneration area continue to experience significant levels of deprivation and would benefit from enhanced opportunities that expand the areas commercial base.